Rates
19. (1) Subject to the regulations, the Board may make orders approving or fixing just and reasonable rates and other charges for the sale of gas by transmitters, distributors and storage companies, and for the transmission, distribution and storage of gas. Board to determine rate base (2) In approving or fixing rates and other charges under subsection (1), the Board shall determine a rate base for the transmitter, distributor or storage company, and shall determine whether the return on the rate base produced or to be produced by such rates and other charges is reasonable. Formula for determining rate base (3) The rate base to be determined by the Board under subsection (2) shall be the total of, (a) a reasonable allowance for the cost of the property that is used or useful in serving the public, less an amount considered adequate by the Board for depreciation, amortization and depletion; (b) a reasonable allowance for working capital; and (c) such other amounts as, in the opinion of the Board, ought to be included. Idem, cost of property (4) In determining the reasonable allowance for the cost of the property under clause (3) (a), the Board shall ascertain the actual cost of the property to the present owner, but, (a) where the actual cost to the present owner of any of the property cannot be ascertained, the Board shall determine a reasonable allowance to be included in the rate base for the cost of that property; and (b) where in the opinion of the Board the actual cost to the present owner of any of the property is more than a reasonable allowance for inclusion in the rate base for the cost of that property, the Board shall determine a reasonable allowance to be included in the rate base for the cost of that property. Idem (5) In considering whether the actual cost mentioned in subsection (4) exceeds a reasonable allowance for inclusion in the rate base and in determining the appropriate deductions to be made in respect of any such excess, the Board may consider all matters it considers relevant, including the public benefit resulting from the acquisition of the property, whether the acquisition at the price paid was prudent in the circumstances existing at the time and, where the property was acquired as an operating system or part thereof, the allowance made for its cost in the rate base of the former owner or, if no such rate base had been determined that included an allowance for the cost thereof, the allowance that would have been made therefor in a rate base for the former owner determined in accordance with this section. Findings of fact (6) Findings of fact on which determinations are made by the Board under subsections (2), (3), (4) and (5) shall be based on the evidence adduced at the hearing. Where rate base may be dispensed with (7) Despite anything to the contrary, the Board may dispense with the determination of a rate base, (a) in the case of a transmitter, distributor or storage company that has been carrying on business by itself and by its predecessor, if any, for less than two years; (b) in the case of the approval or fixing of rates or other charges that, in the opinion of the Board, are of limited application and not unjust or unreasonable in relation to the other rates and charges then being charged by the transmitter, distributor or storage company; (c) in the case of the approval or fixing of prompt-payment discounts or delayed-payment penalties; (d) in the case of a transmitter, distributor or storage company that is selling, transmitting, distributing or storing gas, as the case may be, at a loss; (e) in the case of an application that does not contain a request for an increase in the rates or other charges then being charged for the sale, transmission, distribution or storage of gas by the transmitter, distributor or storage company; (f) in the case of the approval or fixing of increased rates or other charges of a gas transmitter, gas distributor or storage company where the purpose and effect of increasing the rates or other charges is to permit the gas transmitter, gas distributor or storage company to recover all or part of increases, approved, fixed, authorized or permitted by or under any statute, in the cost of gas purchased by or transmitted or stored for him, her or it; or (g) in the case of an order under subsection 15 (8) or subsection (11) of this section. Prohibition as to sale, etc., of gas (8) Subject to the regulations, no transmitter, distributor or storage company shall sell gas or charge for the transmission, distribution or storage of gas except in accordance with an order of the Board, which is not bound by the terms of any contract. Burden of proof (9) Subject to subsection (12), at any hearing with respect to rates or other charges for the sale, transmission, distribution or storage of gas, the burden of proof is on the applicant. Orders on applications (10) Upon an application for an order approving or fixing rates or other charges, the Board may after a hearing, if it is not satisfied that the rates or other charges applied for are just and reasonable, fix such other rates or charges as it finds to be just and reasonable. Interim rate orders (11) The Board may, at the request of any applicant, without a hearing, make one or more orders under subsection (1), each effective for a period of not more than one year, pending a final disposition of the application, (a) where the rates or other charges proposed in the application are the initial rates or other charges for the sale, transmission, distribution or storage of gas by the transmitter, distributor or storage company in the municipality or area named in the application; (b) where, after notice of the application has been given in accordance with the regulations, no one has filed an answer within the time limited therefor; (c) where the application is for approving or fixing prompt-payment discounts or delayed-payment penalties; (d) where the transmitter, distributor or storage company is selling, transmitting, distributing or storing gas, as the case may be, at a loss; or (e) where the application does not contain a request for an increase in the rates or other charges then being charged for the sale, transmission, distribution or storage of gas by the transmitter, distributor or storage company. R.S.O. 1990, c. O.13, s. 19 (1-11). Other rate orders (12) Where the Board of its own motion, or upon the request of the Minister, holds a hearing for the purpose of inquiring into and determining whether any of the rates or other charges for the sale, transmission, distribution or storage of gas by any transmitter, distributor or storage company are just and reasonable, the Board shall, after such hearing, make an order under subsection (1), and in any such hearing the burden of establishing that such rates or other charges are just and reasonable is on the transmitter, distributor or storage company, as the case may be. R.S.O. 1990, c. O.13, s. 19 (12); 1997, c. 37, s. 3 (5). Where section does not apply (13) This section does not apply to any municipality or municipal public utility commission transmitting or distributing gas under the Public Utilities Act. R.S.O. 1990, c. O.13, s. 19 (13).